Despite rapid advances in autonomous driving technology, current autonomous vehicles (AVs) lack effective bidirectional human-machine communication, limiting their ability to personalize the riding experience and recover from uncertain or immobilized states. This limitation undermines occupant comfort and trust, potentially hindering the adoption of AV technologies. We propose PACE-ADS (Psychology and Cognition Enabled Automated Driving Systems), a human-centered autonomy framework enabling AVs to sense, interpret, and respond to both external traffic conditions and internal occupant states. PACE-ADS uses an agentic workflow where three foundation model agents collaborate: the Driver Agent interprets the external environment; the Psychologist Agent decodes passive psychological signals (e.g., EEG, heart rate, facial expressions) and active cognitive inputs (e.g., verbal commands); and the Coordinator Agent synthesizes these inputs to generate high-level decisions that enhance responsiveness and personalize the ride. PACE-ADS complements, rather than replaces, conventional AV modules. It operates at the semantic planning layer, while delegating low-level control to native systems. The framework activates only when changes in the rider's psychological state are detected or when occupant instructions are issued. It integrates into existing AV platforms with minimal adjustments, positioning PACE-ADS as a scalable enhancement. We evaluate it in closed-loop simulations across diverse traffic scenarios, including intersections, pedestrian interactions, work zones, and car-following. Results show improved ride comfort, dynamic behavioral adjustment, and safe recovery from edge-case scenarios via autonomous reasoning or rider input. PACE-ADS bridges the gap between technical autonomy and human-centered mobility.